Western Australia is overhauling its laws around retirement villages, with reforms including a 12-month time limit on exit entitlements being paid to departing residents.
The proposed major amendments to the Retirement Villages Act 1992 would address a number of issues between operators, residents, and residents’ families. These measures include:
- Earlier provision of key details of village contracts, to help prospective residents compare and decide;
- A publicly-accessible database, managed by Consumer Protection, with basic details about WA villages;
- Requiring villages to clearly and accurately describe products from the start, including amenities, tenure type, and services; and
- Mandating that residents leaving villages be paid their exit entitlements within 12 months.
Once the new laws are passed, operators will have 24 months to adapt, followed by a 12-month transition period to prepare for the requirement around exit entitlements.
According to WA Commerce Minister Roger Cook (pictured), the Government canvassed all issues relating to living in retirement villages, “from start to finish”.
“The extensive review of retirement village laws put a microscope over the process, from when seniors decide to enter into a retirement village contract, issues that arise while living in a village and some of the difficulties experienced by residents when it's time to leave, or by families when the resident passes away,” he said.
Minister Cook added that the Government hopes the exit entitlement time limit will help departing village residents avoid a stressful wait for their repayment, particularly if the money is needed to fund alternative accommodation or aged care.
“We also hope that introducing time-limits gives residents greater certainty and confidence in buying into a retirement village, that they know they will be able to access their exit entitlements within a reasonable timeframe,” he said.
“It’s important that the industry remains financially viable. We believe that we have got the balance right by including a transition period.”
WA currently is home to around 300 retirement villages, which between them house an estimated 25,500 residents.
The Decision Regulatory Impact Statement (D-RIS) on the proposed measures is now available for viewing on the WA Consumer Protection website.
